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Tuesday, September 18, 2012

Dhaka likely to seek $10.79b from China

JAGARAN CHAKMA

Dhaka is likely to seek USD 10.79
billion in concessional or soft loans from China to modernise the country’s
rail communications by implementing eight projects.

This was decided at an inter-ministerial meeting, chaired by the additional
secretary of the railway ministry, and head of the committee on Chinese
proposals for investment in railways, Shashi Kumar Singha, on February 10.
Meanwhile, China assured Bangladesh of assistance in constructing the
Dhaka-Cox’s Bazar broad gauge rail track and setting up coal-based power plants
and a rice research centre, and in exploring oil and natural gas, among
others.

The assurances came during the three-day visit of Chinese foreign minister Wang
Yi last December.

Wang Yi observed that China and Bangladesh, without any dispute in history and
conflict in the present, can only enjoy friendship and cooperation. “China
highly appreciates the firm and consistent support of Bangladesh to issues
concerning China's core interests,” he said.

According to the working paper of the meeting, the Planning Commission has
already approved the pre-detailed project plans (PDPP) of the Padma rail link
project phases 1 and 2 in principle. PDPPs have been sent to the Economic
Relations Division (ERD) to start negotiations for the loan. Besides, a
memorandum of understanding (MoU) has been signed between Bangladesh Railway
and China Railway Group Ltd regarding implementation of the project on January
28.

The committee also proposed to receive even commercial loans and bidder
financing, if concessional loans are not available.